chapter 7 Flashcards
A major trend in international developments includes
A. greater international trade and operations.
B. a growing recognition of an international managerial perspective.
C. a large increase in international investment.
D. all of these.
all of these
The reasons that explain why some governments make better use of the inflows from foreign investment and know-how than others include all of the following EXCEPT
A. governmental practices that are business-friendly.
B. local entrepreneurs that can train workers and invest in modern technology.
C. high tariffs and taxes on foreign investors and multinational corporations provide income to improve living conditions.
D. sound management of broader economic factors such as interest rates and inflation.
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high tariffs and taxes on foreign investors and multinational corporations provide income to improve living conditions.
Michael Porter’s framework all of the following factors affect a nation’s competitiveness EXCEPT
A. factor conditions.
B. demand characteristics.
C. related and supported industries.
D. policies that protect the nation’s domestic competitors.
living conditions.
policies that protect the nation’s domestic competitors.
Rivalry is intense in nations with conditions of \_\_\_\_\_\_\_\_\_\_ consumer demand, \_\_\_\_\_\_\_\_\_\_ supplier bases, and \_\_\_\_\_\_\_\_\_\_ new entrant potential from related industries. A. weak; weak; high B. strong; strong; low C. strong; strong; high D. weak; weak; low related industries.
strong; strong; high
According to Michael Porter, firms that have experienced intense domestic competition are
A. unlikely to have the time or resources to compete abroad.
B. most likely to design strategies aimed primarily at the domestic market.
C. more likely to design strategies and structures that allow them to successfully compete abroad.
D. more likely to demand protection from their governments.
more likely to design strategies and structures that allow them to successfully compete abroad.
All of the factors below have made India’s software services industry extremely competitive on a global scale EXCEPT
A. large pool of skilled workers.
B. large network of public and private educational institutions.
C. tax and antitrust legislation that protect the dominant players in the industry.
D. large, growing market and sophisticated customers.
tax and antitrust legislation that protect the dominant players in the industry.
All of the following would be viewed as advantages of global diversification EXCEPT
A. fewer social and political risks than domestic operations.
B. a firm not being solely dependent on the domestic market.
C. a firm with large margins at home helping subsidize its operations in other nations.
D. the potential to lower costs of operation even if the primary market is at home.
fewer social and political risks than domestic operations.
Optimizing the location of every activity in the value chain can yield all of the following strategic advantages EXCEPT
A. performance enhancement.
B. cost reduction.
C. extending the life cycle of the product of service.
D. risk reduction.
extending the life cycle of the product of service.
Microsoft decided to establish a corporate research laboratory in Cambridge, England
A. because England is an ally of the United States.
B. to access the outstanding technical and professional talent available there so that they can attain world-class excellence in selected value-creating activities.
C. because the local language is English.
D. because the company views the United States as a risky place to expand due to the actions of the U.S. Department of Justice.
to access the outstanding technical and professional talent available there so that they can attain world-class excellence in selected value-creating activities.
The sale of Boeing’s commercial aircraft and Microsoft’s operating systems in many countries enable these companies to benefit from
A. higher prices in their domestic markets.
B. economies of scale.
C. optimizing the location for many activities in their value chain.
D. reducing their exposure to currency risks.
economies of scale.
Many U.S. multinational companies set up maquiladora operations south of the U.S.-Mexico border primarily
A. to sell products into the growing Mexican market.
B. as part of US government-initiated measures to discourage illegal immigration.
C. to take advantage of the lower tax rates in Mexico.
D. to take advantage of the low cost of labor.
to take advantage of the low cost of labor.
Appreciation of the U.S. dollar will have the following impact on McDonald’s:
A. lower sales abroad because foreign customers cannot afford McDonalds’ products.
B. more transfer of ingredients from the U.S. to branches abroad to take advantage of the higher dollar.
C. lower profits, because foreign profits will be reduced when measured in dollars.
D. no impact at all.
lower profits, because foreign profits will be reduced when measured in dollars.
\_\_\_\_\_\_\_\_\_\_ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house. A. Offshoring B. A global strategy C. Outsourcing D. A transnational strategy
Outsourcing
Which one of the following is one of Theodore Levitt’s assumptions supporting a pure global strategy?
A. Consumers are willing to pay more for specific product features.
B. Customer needs and interests are becoming more dissimilar.
C. If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved.
D. MNCs can compete with aggressive pricing on low cost products that meet the common needs of global consumers.
MNCs can compete with aggressive pricing on low cost products that meet the common needs of global consumers.
Pressures to “reduce costs” require that
A. a company should not trade idiosyncratic preferences in product features for higher economic returns.
B. a company must pursue what is economically beneficial to the company including maximizing economies of scale and learning curve effects.
C. the manager should follow a multidomestic strategy to maximize the economic benefits to the company.
D. the company needs to supplement the local foreign economy in a manner specified by the local government.
B. a company must pursue what is economically beneficial to the company including maximizing economies of scale and learning curve effects.
Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy? A. international B. global C. multidomestic D. transnational
A. international
